GBPUSD Indicates Strong Bearish Momentum Below Key Resistance Levels

Market Analysis – January 20

GBPUSD indicates strong bearish momentum below key resistance levels. A successful retraction at the breaker block in the premium zone will likely instigate a massive crash. The MACD (Moving Average Convergence Divergence) indicator on the daily chart reflects bearish momentum, as the MACD line is below the signal line, with histogram bars in the negative region. Additionally, the 9-period and 21-period Moving Averages (MA) are in a bearish crossover, confirming downward momentum. The price is also trading well below these MAs, further reinforcing the bearish sentiment.

GBPUSD Key Levels

Supply Levels: $1.25760, $1.28110, $1.34340
Demand Levels: $1.23000, $1.20370, $1.18020

GBPUSD Long-Term Trend: Bearish

The price action shows a clear change of character (CHoCH) near $1.28110, indicating a shift from bullish to bearish sentiment. After rejecting the supply zone and Fair Value Gap (FVG) around $1.28110, the price has continued its descent, forming lower highs and lower lows. The recent bounce near $1.21610 aligns with a minor support level, but it lacks strong bullish follow-through, confirming seller dominance.
The projection for GBPUSD remains bearish, with a likely retest of the breaker block at $1.24060 before continuing downward to break $1.20370. A sustained move below $1.21610 could push the price toward the major support at $1.20370 and potentially $1.18020. Bulls are unlikely to regain control unless the price breaks above $1.25760, making any short-term rallies opportunities for sellers to reenter.

GBPUSD Short-Term Trend: Bearish

The GBPUSD is respecting a downward trendline, showing consistent lower highs. The price is consolidating around the $1.2200 zone, failing to break the resistance near $1.23000.

A bearish breakout below the $1.20370 support could lead to further crashes downward. MACD indicates weakening momentum, supporting the bearish outlook.

Investors monitoring forex signals alongside forex trends may find valuable insights to navigate these market conditions.

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